Gamestop Corporation (GME) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Gamestop Corporation (NYSE:GME) from a hold rating to a sell rating in a research note published on Monday.

According to Zacks, “GameStop has underperformed the industry in the past three months due to decline in the bottom line over the past quarters. In second-quarter fiscal 2017, the company not only missed the Zacks Consensus Estimate but also witnessed 44.4% decline in earnings. Management continues to expect earnings for fiscal 2017 in the range of $3.10-$3.40 per share, compared with fiscal 2016 earnings of $3.77.  However, the top line continues to improve year over year. The company sales were driven by robust demand for Nintendo Switch and Collectibles as well as strong International sales. Moreover, gains in both Technology Brands and Collectibles continue to bode well. Further, it expects to enhance collectibles business to approximately $650-$700 million during fiscal 2017 and anticipates becoming a $1 billion business by the end of fiscal 2019. In the third quarter, Collectibles sales are forecasted to increase by 30-40%.”

GME has been the topic of several other research reports. Oppenheimer Holdings, Inc. restated a hold rating on shares of Gamestop Corporation in a research note on Friday, August 25th. Loop Capital restated a buy rating and issued a $28.00 target price on shares of Gamestop Corporation in a research note on Wednesday, August 23rd. Robert W. Baird restated an outperform rating and issued a $24.00 target price on shares of Gamestop Corporation in a research note on Tuesday, August 29th. ValuEngine cut Gamestop Corporation from a buy rating to a hold rating in a research note on Friday, September 1st. Finally, BidaskClub upgraded Gamestop Corporation from a sell rating to a hold rating in a research note on Friday, August 4th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating, seven have given a buy rating and one has given a strong buy rating to the stock. The stock has a consensus rating of Hold and an average target price of $25.24.

Gamestop Corporation (NYSE GME) traded down $0.23 during trading hours on Monday, hitting $16.20. The stock had a trading volume of 4,374,700 shares, compared to its average volume of 2,660,787. Gamestop Corporation has a fifty-two week low of $15.91 and a fifty-two week high of $26.84. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.34 and a quick ratio of 0.49. The company has a market cap of $1,664.48, a PE ratio of 4.50, a PEG ratio of 0.33 and a beta of 1.24.

Gamestop Corporation (NYSE:GME) last released its quarterly earnings data on Thursday, August 24th. The company reported $0.15 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.16 by ($0.01). Gamestop Corporation had a net margin of 3.90% and a return on equity of 16.66%. The business had revenue of $1.69 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same quarter last year, the firm earned $0.27 EPS. The company’s revenue for the quarter was up 3.6% on a year-over-year basis. equities analysts anticipate that Gamestop Corporation will post 3.31 earnings per share for the current year.

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Several hedge funds have recently bought and sold shares of GME. BlackRock Inc. increased its holdings in shares of Gamestop Corporation by 11,239.8% during the 1st quarter. BlackRock Inc. now owns 8,262,281 shares of the company’s stock worth $186,314,000 after acquiring an additional 8,189,420 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Gamestop Corporation by 38.3% during the 2nd quarter. Dimensional Fund Advisors LP now owns 8,501,615 shares of the company’s stock worth $183,720,000 after acquiring an additional 2,353,774 shares during the last quarter. Numeric Investors LLC acquired a new position in shares of Gamestop Corporation during the 2nd quarter worth approximately $34,679,000. Balyasny Asset Management LLC increased its holdings in shares of Gamestop Corporation by 1,459.9% during the 2nd quarter. Balyasny Asset Management LLC now owns 724,800 shares of the company’s stock worth $15,663,000 after acquiring an additional 678,335 shares during the last quarter. Finally, OxFORD Asset Management LLP increased its holdings in shares of Gamestop Corporation by 3,009.1% during the 3rd quarter. OxFORD Asset Management LLP now owns 403,092 shares of the company’s stock worth $8,318,000 after acquiring an additional 390,127 shares during the last quarter.

Gamestop Corporation Company Profile

GameStop Corp. is an omnichannel video game retailer. The Company sells video game hardware, physical and digital video game software, video game accessories, as well as mobile and consumer electronics products and other merchandise through its GameStop, EB Games and Micromania stores. It operates its business in five segments, which consists of four Video Game Brands segments: United States, Canada, Australia and Europe, and Technology Brands segment.

Analyst Recommendations for Gamestop Corporation (NYSE:GME)

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